Key Takeaways
- A forensic economist turns the financial fallout of an injury into clear dollar figures for settlement talks and trial.
- Retaining an economist early shapes discovery and leaves more time to build a damages model that holds up to scrutiny.
- Plaintiff and defense attorneys both use forensic economists, whether the goal is to prove losses or challenge an opposing report.
A forensic economist’s personal injury analysis puts a reliable price on a claim’s lost earnings, medical costs, and future care. Consultants who work with law firms nationwide can also trace financial records, value businesses, and follow cryptocurrency transactions when a claim reaches past a paycheck. Attorneys then use those findings to judge case value, push back on low settlement offers, and walk a jury through the numbers.
What Does a Forensic Economist Do in a Personal Injury Case?
A forensic economist calculates the financial losses an injured person suffers because of an injury, both now and in the future. These losses may include lost wages, reduced earning capacity, and the value of household tasks the person can no longer perform. The impact can be substantial, as private employers reported 888,100 injury and illness cases involving days away from work in 2024, according to the Bureau of Labor Statistics.
When Should Counsel Retain a Forensic Economist?
Counsel should retain a forensic economist when a personal injury case involves substantial lost income, reduced future earning capacity, or significant long-term financial losses. An economist can calculate damages, evaluate the opposing expert’s findings, and testify as an expert witness to explain and defend those calculations at trial. Hiring a forensic economist early in the case gives the legal team time to gather financial records, calculate damages, and prepare the expert’s report and testimony before court deadlines.
How Are Economic Damages Quantified and Presented?
A personal injury damages calculation compares what the injured person would have earned with what that person can earn now. Picture a carpenter in his 40s who can no longer climb ladders, which could cut his pay for the next 20 years. The economist then converts that future loss into the present value of damages, or its worth as a lump sum today. To help jurors see how the economist arrived at that figure, charts can illustrate each step of the calculation.
How Does a Forensic Economist Support Both Plaintiff and Defense?
Plaintiff attorneys use an economic damages expert witness to calculate financial losses, such as lost wages and future medical expenses. Defense attorneys may hire their own experts to check those calculations and challenge estimates they believe are too high. In federal court, both sides must follow Federal Rule of Evidence 702. Updated in December 2023, the rule requires the party presenting an expert to show that the expert’s opinion is more likely than not based on reliable methods.
Frequently Asked Questions
Are lost wages calculated before or after taxes?
Lost wage calculations may account for income taxes, but the rules for presenting these losses vary by jurisdiction.
How does a forensic economist calculate future lost earnings?
A forensic economist estimates future earnings without the injury, accounting for raises, benefits, and reduced earning capacity, then calculates the fair value today.
Will a forensic economist testify at trial?
A forensic economist may testify to explain how the financial losses were calculated and support the damages claimed.
Forensic Economist Personal Injury From Valentine Forensic Finance Can Put a Real Price on Your Client’s Losses
To learn more about the role of forensic economists in personal injury litigation, contact Valentine Forensic Finance. Call 228-236-4133 or complete our online form today for a free consultation. We have offices in Gulfport, Mississippi, and serve clients nationwide.